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Saturday 06 May 2023 18:54:15 GMT
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TEMU & SHEIN ARE DODGING TAXES IN SOUTH AFRICA South African retailers have been for a long time now been concerned that your girlfriend’s fav “clear my cart” stores #Shein and #Temu are exploiting tax loopholes in SA in order to sell their products at prices that local shops cannot compete with.   A recent court judgement In South Africa, will see #Shein and #Temu pay standard import taxes on goods and parcels under R500, compared to before when they could get clothing parcels of this size through customs with only a 20% import duty and 0% VAT.   So When does this start… Well   From 1 July 2024, all clothing parcels will be subject to an import duty of 45% plus VAT.   Buying clothes from these online retailers is going to be more expensive.   The move by SARS is an attempt to “level the playing field” for local retailers following criticism that Chinese firms Shein and Temu are “abusing” tax loopholes to gain an unfair advantage in the local market by allegedly breaking up large shipments into “small packages”.   With the now proposed increase there is likely to be about a 39% price increase on sub-R500 orders. So how will this translate into the prices of what you buy?   An official with one of the trade unions further claimed Shein pays as little as 10%–20% on import tariffs compared to standard tariff charges of 40%–45%. In the complaint, the unions allege that the company deliberately sends goods to its customers in small packages to accrue less import duty.   To illustrate the impact of the change, consider the example of an R100 clothing order from Shein or Temu.   Previously, this order would only attract an additional R20 in tax and no VAT.   Following the change, getting the same item through customs will require paying a R45 import duty and R21.75 in VAT.   The total price of the order will now be R166.75 instead of R120, a 39% increase.   Actually tell us in the comments if you’ve ever bought from these retailers, what was your experience like, what made you buy there, was it the selection of items, prices or something else? Whatever the future holds the Chinese are going to be a major players. Tell us how this makes you feel in the comments?
TEMU & SHEIN ARE DODGING TAXES IN SOUTH AFRICA South African retailers have been for a long time now been concerned that your girlfriend’s fav “clear my cart” stores #Shein and #Temu are exploiting tax loopholes in SA in order to sell their products at prices that local shops cannot compete with. A recent court judgement In South Africa, will see #Shein and #Temu pay standard import taxes on goods and parcels under R500, compared to before when they could get clothing parcels of this size through customs with only a 20% import duty and 0% VAT. So When does this start… Well From 1 July 2024, all clothing parcels will be subject to an import duty of 45% plus VAT. Buying clothes from these online retailers is going to be more expensive. The move by SARS is an attempt to “level the playing field” for local retailers following criticism that Chinese firms Shein and Temu are “abusing” tax loopholes to gain an unfair advantage in the local market by allegedly breaking up large shipments into “small packages”. With the now proposed increase there is likely to be about a 39% price increase on sub-R500 orders. So how will this translate into the prices of what you buy? An official with one of the trade unions further claimed Shein pays as little as 10%–20% on import tariffs compared to standard tariff charges of 40%–45%. In the complaint, the unions allege that the company deliberately sends goods to its customers in small packages to accrue less import duty. To illustrate the impact of the change, consider the example of an R100 clothing order from Shein or Temu. Previously, this order would only attract an additional R20 in tax and no VAT. Following the change, getting the same item through customs will require paying a R45 import duty and R21.75 in VAT. The total price of the order will now be R166.75 instead of R120, a 39% increase. Actually tell us in the comments if you’ve ever bought from these retailers, what was your experience like, what made you buy there, was it the selection of items, prices or something else? Whatever the future holds the Chinese are going to be a major players. Tell us how this makes you feel in the comments?

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